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	<title>Aaron Schiff &#187; Telecommunications</title>
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		<title>The economics of mobile number portability</title>
		<link>http://aaronschiff.net/2012/01/the-economics-of-mobile-number-portability/</link>
		<comments>http://aaronschiff.net/2012/01/the-economics-of-mobile-number-portability/#comments</comments>
		<pubDate>Tue, 10 Jan 2012 07:23:44 +0000</pubDate>
		<dc:creator>aaron</dc:creator>
				<category><![CDATA[Telecommunications]]></category>

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		<description><![CDATA[A tweet today got me thinking a little about mobile number portability (MNP) &#8230; The conventional wisdom is that MNP increases competition in mobile markets as it allows customers to switch more easily between networks. However there is also a limited supply of &#8216;good&#8217; numbers on any given network (123-4567, 888-8888, etc). A new network [...]]]></description>
			<content:encoded><![CDATA[<p>A <a href="https://twitter.com/#!/Vultage/status/156193197872250880">tweet</a> today got me thinking a little about mobile number portability (MNP) &#8230; The conventional wisdom is that MNP increases competition in mobile markets as it allows customers to switch more easily between networks. However there is also a limited supply of &#8216;good&#8217; numbers on any given network (123-4567, 888-8888, etc). A new network with its own number prefix is able to replenish the supply of &#8216;good&#8217; numbers and some customers who have a &#8216;bad&#8217; number on their old network will be willing to switch even if they have to change their number.</p>
<p>So MNP is not necessary for the new network to compete for all customers, and in fact the new network is at an advantage in terms of attracting customers with &#8216;bad&#8217; existing numbers. (Whether or not customers with &#8216;bad&#8217; numbers are valuable customers is another question, however.)</p>
<p>On top of this, unless there&#8217;s some system for alerting customers about which network the people they are calling belong to, MNP possibly introduces some confusion about the cost of making a call, if there are different prices for calling on the same network versus calling other networks. This could have effects on customer behaviour and competition between networks that are more subtle &#8230; without a formal economic model it&#8217;s hard to be sure.</p>
<p>Anyway, I don&#8217;t have any strong conclusions here, just that there are some aspects MNP that might not be immediately obvious. And it&#8217;s interesting how a simple tweet can get you thinking about all sorts of things.</p>
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